Financial and operating statistics 1974

Financial and operating statistics 1974

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VOLVO

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Volvo in brief

The Volvo Group develops, produces and markets pro- ducts and services for transport and transport-related pur- poses. The Group manufactures more than 1 DO products which are sold in mo re than 100 different markets throughout the world.

History and Business

AB Volvo commenced operations in 1926 in Gothenburg, Sweden- where the Group still has its headquarters and its largest plant- with the object of designing and assembling motor vehicles. Following the acquis1tion in 1931 of Sköfde Gjuteri och Mekaniska Verkstad AB (now Volvo Skövde Plants) the manufacturer of the engines for the VOlvo motor ear, Volvo developed its business from an assembly to a manufacturing operation. This was the first of a number of acquisitions of manufacturing companies, formingthe foundation for the development of the Volvo Group. In 1941 AB Volvo acquired a majority holding in Svenska Flygmotor AB), in 1942 Köpings Mekaniska Verkstads AB, in 1950 AB Bolinder-Munktell (now Volvo BM AB) and in 1969 Olofström AB were acquired. Volvo BM AB and Volvo Flygmotor AB remain as subsidiaries, while the other acquired manufactu- ring campanies have been merged inta the parent company.

In the 1960's Volvo's Swedish ear assembly, parts hand- lin g and Group head office we re transferred to a new camplex at Torslanda, Gothenburg,·which has since been expanded in several steps. The smaller Kalmar assembly plant which has been designed for completely different productian methods and new forms of work organisation, in effect doing away with assembly Iine techniques, was completed in 197 4. Smaller factories for the manufacture of components have been acquired or established in various places throughout Sweden, partly selected to meet Government localisation policy requirements. In Iine w1th an emphasis on export business t hat has been a prominent part of the policy from an early stage of the Company's development, Volvo has since the 1960's established wholly or partly-owned assembly plants outside Sweden. Today such plantsexist in Belg·1um, the Netherlands, Canada, Peru, Australia, Iran and Malaysia.

In Chesapeake, Virginia, U.S.A., an assembly plant for cars has been under construction since the summer of 197 4.

Tagether with Peugeot and Renault, Volvo in 1971 formed a jointly owned company for the development and manufacture of ear engines. As a result of this JOint venture a V6 engine for the Volvo 264 mode l is now being manufactured at Douvrin in Northern France.

A cc-operation agreement for the joint design and deve- lopment of light and medium heavy trucks was concluded in 1971 with three European manufacturers of trucks. A result of this venture is a new range of forward-centroi short haul trucks which will be built in the new Volvo assembly plant in Ghent, Belgium.

lncreased emphasis on productian outside Sweden -so far in the form of assembly operations, the main components being delivered from the Group's Swedish factories- is in response.to the need for close centact with major markets, b ut also to the natural desire on the part of same countries for a part of manufacturing or assembly to be carried out locally.

The build up of capacity in Sweden andabroad has been matehed by a gradual growth and strengthening of the distri- bution and dealer network. In the Nordie Area, Volvo has through its subsidiary AB Volvator, taken a financial interest in dealerships in order to participale directly. in the structural change and Qrowth of sales in these important market areas.

Outside Sweden the Group maintains sales companies, most of them with their own import terminals, in Denmark, Finland, Norway, the Federal Republic of Germany, Switzerland, Austria, France, The Netherlands, the United Kingdom, ltaly, Spain, U.S.A., Canada, Argentina, Peru and Australia.

To finance sales at the dealer leve\ in im portant markets, Volvo has formed or become a shareholder in finance cam- panies in Sweden and Norway (partly owned), Switzerland, Belgium and Hang Kong (wholly owned by Volvo).

In Sweden the subsidiary company, Försäkrings AB Volvia, sells Volvo ear insurance, partlyas an extension to the Volvo five-year "PV-guarantee" for cars sold and registered in Sweden.

In recent years Volvo has expanded its range of products to include recreational products through the acquisition in 1973 of Jofa AB, a Swedish sports equipment manufacturer, in 197 4 Ryds Industri AB, a manufacturer of fibreglass boats, and in 1975 Koflach Sportgeräte GmbH, an Austrian company making boats for alpine skiing.

An agreement was entered inta in the autumn of 1974, by which Volvo in effect took over responsibility for the manage- ment and centroi of the Dutch ear company, Van Doorne's Personenautofabriek DAF B.V. ("DAF"). In 1972 Volvo had acquired 33 per cent, of the share capita\ of DAF. As a result of a new issue of shares by DAF in the autumn·of 1974, Volvo's shareholding was increased to 46 per cent. Since January, 1975, Volvo has held 75 per cent, of the shares in DAF. Of the remaining 25 per cent., DAF Holding B. V. holds 15 per cent, and the Dutch Government through its wholly owned company, N.V. Nederlandse Staatsmijnen (the Dutch State Mines), holds 1 O per cent. As from 1st May, 1975 the company's name is Volvo Car B.V.

By the end of 197 4 the Group h ad a bo ut 56,700 employees of which 46,300 were 1n Sweden. This is an increase cam- pared with the preceding year of about 5,300 persons.

Sh areho Id ers

Volvo has about 120,000 shareholders. The company is free from deminating owner interests. Volvos s hares have been Iisted on the stockhalm Stock Exchange since 1935 and on the London Stock Exchange since 1972 and on the Stock Exchanges of Dusseldorf, FrankturtiMaln and Hamburg since 1974.

VOLVO IN BRIEF

Sales organlzatlon

The Volvo Group has established a world-wide sales net- work and has distribution campanies in Sweden, Danmark, Finland, Norway, the United Kingdom, West Germany, Switzerland, Belgium, France, ltaly, the USA, Canada, Argentina, Peru and Australia. Through its wholly owned subsidiary in Seandinavi a, AB Volvator, Volvo owns or has interests in a number of dealerships.

Volvo's markelshare in Sweden for cars in 1974 was about 22 per cent, and for heavy trucks and buses slightly over 50 per cent. Even if Sweden is still the most important market for the Group, the trend has been towards a growing share for sales in other markets. Out of the total increase in sales in 1970-1974, Skr. 6,137 million, or 73 per cent., accrued in foreign markets.

Divided inta market areas, the 1974 Group sales were as follows: -

Sweden

Nordie Area excluding Sweden Other European markels North America

Other markels Total

Skr.

Million % 3,385 32 1 ,388 13 2,594 25 1,851 18 1,31 g 12 10,537 100

The Group isattempting to improve the balance between the major market areas and also to increase its penetration of additional markets. Thus the marketing ettort in the Far East is being expanded, for instance, through a sales company in Japan of which Volvo owns 50 per cent. Assembly plants are also under construction in Thailand and lndonesia.

lnvestment and financlng

Over the five-year period 1970-197 4, the Group invested some Skr. 3,200 million in plant, the bulk of it in Sweden.

lnvestment in plant and company acquisitions has been of the order of 8-1 O per cent. of Group sales per year. Most investment has related to the gradual expansion of produclive capacity, but investment in new facilities for technological development and for the strengthening of the marketing orga- nisation has also been significant.

Among the major investments inSweden are an expansion of the capacity of the diesel and petroi engine factorias at Skövde, a new pressing plant at Olofström, a new assembly plant for cars at Kalmar and increased assembly capacity for trucks and a ear development centre at Gothenburg.

In Belgium the ear assembly plant has been expanded to a capacity of 70,000 u nits per year. An assembly plant for light and medium heavy trucks has also been built there. In 1973 a major central warehouse for parts was completed in Ghent, Belgium, with the object of serving the European markats

outside the Nordie Area. ·

The Group's operations have in recent years been charac- terised by a continued high rate of expansion. Over the five- year period 1970-1974, Group sales had more than doubled.

Warking capital over the period has required considerable additions as the growing businessvolurna and inflationarytrends have made heavy demands on capita! for i nventory and receivabl e s.

Good operating results combined with the Group's policy of consolidatian have made possible a large measure of inter- nally generatad financing of investments. The Group's untaxed reserves during 1970-1974 rose by some Skr. 1,700 million,

and out of reported net profits, same Skr. 500 million, or 64 per cent., have been reta i ned in the business.

Production Facillties

The Group's principal productian facilities are located in Sweden, where Volvo has 25 factories, including assembly factorias for cars, trucks, buses, marine and industrial engines, agricultural tractors, earthrnaving and farestry machines and jetengines as weil as factorias for productian of the most vital components in the Volvo products such as engines, gearboxes, axles, brakas and bodies.

Volvo has established wholly-owned assembly plants in Belgium, Canada and Australia, and partly-owned plants in Iran, Malaysia and Peru. Current plans include the building of an assembly plant for cars in Chesapeake, USA. This establishment makes Volvo the first foreign ear manufacturer with a plant in America.

In cc-operation with Renault and Peugeot Volvo has a factory near Lille in France for the manufacture of ear engines.

DAF Car B.V.

At the beginning of 1975 Volvo h eld 46 per cent., and as from 31st January, 1975 Volvo owns 75 per cent. of the share capita! of DAF. This holding has not been consolidaled into the 197 4 accounts of the Volvo Group.

The sales of DAF and its subsidiaries in 197 4 amounted to Of l 538 m iii i on. w h ich was 15 per cent. bel o w 1973 sales.

The number of passenger cars produced was 69,980 as against 98,750 in 1973.

After a considerable write-down on inventory (Dfl24. 7 million) in the 197 4 accounts, DAF reporteda pre-tax loss on operations of Dfl 88.5 million. For 1973 the company reported a pre-tax profit of Dfl 12.6 million.

The number of employees at the beginning of 1975 was approximately 6,1 00.

Financial statistics

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FINANCIAL STATISTICS 1974 1973 1972 1971 1970 1969

Consolidated lncome statements for 1969-1974 (In milllons of Skr)¹1

Sales: • • • • • • • • • • • • o • • • 10,537 8,986 7,346 6,104 5,324 4,400 Less: Cost of sales, selling and

administrative expenses . 9,476 7,835 6,383 5,499 4,765 3,789

1,061 1 '151 963 605 559 611

Less: Provision for depreciation 358 285 237 166 131 124

Operating income . . . 703 866 726 439 428 487

Add: Interest received less paid (7) 40 36 19 37 56

Dividends received . . . 2 2 2 1 1

Profit on sale of shares ... 13 12

Other income/(expenses). 3921 (1 2) (6) 4 (7)

_ ______Q)

lncome before allocations and taxes 737 909 758 463 459 553

Less: Allocation to/(reallocation trom):31

General inventory reserves. 384 179 102 85 167 57

Extra depreciation

...

(11) 41 21 39 12 (23)

Reserve against cost of

investments . . . 23 10 20 10 11

lnvestment lunds . . . . 51 191 212 89 37 174

Special investment lunds 50 . Work environment lunds 68

lnventory investment accounts (21) 544 - 421 - 355 - 223 - 216 - 219

lncome before taxes ... 193 488 403 240 243 334

Less: Provision for taxes . 86 240 228 113 112 166

Minority interests . 2 2 1

Net income ... . . . 105 246 174 127 131 168

Sales by product (In milllons of Skr)

Cars . . . .. .. .... . 5,569 5,132 4,332 3,640 3,127 2,516

Trucks .. ....

..

2,307 1,854

{ 1,508 { 1 '188 { 1,037

{

⁹¹⁴

Buses ... 211 134

Marine and industrial engines 507 424 335 256 202 177

Earthmoving, agricultural and

farestry machines . . . ... . 1,349 986 819 745 680 583

Jet engines, hydraulic machines etc. 330 290 255 189 117 132

Recreational products . . . .. 84 Other products ( development

commissions, tools etc) .... 180 166 97 86 161 78

Total • • • • • • • • • • • • o . o 10,537 8,986 7,346 6,104 5,324 4,400

Sales by markets (In millions of Skr)

Sweden . . . . ... ... . . ... 3,385 2,703 2,209 1,923 1,856 1,736

The Nordie countries excl. Sweden 1,388 1,258 1,043 947 850 739

Europe excl. Nordie countries. 2,594 2,543 2,054 1 ,487 1,150 822

North America . 1 ,851 1,592 1,406 1,271 1,079 769

Other markels . 1,319 890 634 476 389 334

Total .. . . 10,537 8,986 7,346 6,104 5,324 4,400

'ISwedish kronor. One million Skr on Dec.

31, 197 4, equalled US $246,000. E 1 05,000 or DM 590,000.

The inflation in Sweden was 11% during 1974, (8% 1973, 6% 1972. 7% 1971' 8% 1970 4% 1969).

211n this amount an extraordinary prolit made by Volvo BM on sale of fixed assets is in- cluded. (Skr 40 million.)

'•All allocations except the reserve against east of investments represent untaxed reserves pr011ided by the legislatian in Sweden and same other countries.

Return on lnvestment1l,%

Cars . . . . . . . . . .. . Trucks and buses . . . . . - ... . Marine and industrial engines.

Earthmoving, agricultural and forastry machines.

Jet engines, hydraulic machines etc.

Group total

lncome as a percentage of sales²¹ Cars . . . ... . . Trucks and buses . . . . . . ... . Marine and industrial engines . . . . .

Earthmoving, agricultural and forestry machines Jet engines, hydraulic machines etc.

Group total . . .- . . . . . . . . . ..

Profit and loss ratios:

lncrease in sales from preceding year in per cent . . . .

Operating income as a percentaga of sales lncome before allocations and taxes as a percentaga of sales . . . . . . Adjusted income in Skr per share⁴1 • • • •

statement of tunds (in millions of Skr) - Consolidated

Source of funds Net income . . . . Add non-cash charges:

Depreciation etc. . .. .

Allocation to general inventory reseNes Allocation to investment and work environment lunds .. .

Total ... ... . . . Less dividend payable Resulting in a cash flow of

New issues of Parent Company Shares lncrease in long-term liabilities

lncrease in current liabilities . Total sources of lunds ....

Application of funds

Additions to inventories and receivables Providing lunds before investment of lnvestment in:

Property, plant and equipment-partly through acquisitions . . . Shares and loans . . . . . . . . . .... . lncreases (decreases) in blocked investment account with The Central Bank of Sweden Total investments . . . .. . . .. . . lncreases (decreases) in cash and

short-term notes . . . ... .. .. . . . . The rate of self-financing may be expressed as Cash .'low

x

_{1 00} =

Total 1nvestments

1974

6 13 12 14 11

g

3 11 9

12 15 6.6

17.3 6.7

6.631 25:1 031

105

436 384 148 1,073 78 995 100 400 1.036 2.531

1 ,714 817

871 112 (1) 982 (165)

101%

' 1The return on investment ligures for the various product groups have been computed In accordance with the standards used by the Volvo Group and in this calculatlon the product resull computed in accordance with these standards, is applied against the assets employed. (See Annual Report p. 7)

'l This profit margin expresses the retationship existing between the respective product group' s sh are of Group income belare allocations and taxes and its sales.

1973

14 15 18 9 11 12

9 12 15 9 15 10.1

22.3 9.6

10.1 34:20

246 389 179 191 1,005

75 930 12 168 849 1,959

788 1 '171

769 26 96 891 280

104%

1972

N IA

11 11 16

5 11 10.3

20.4 9.9

10.3 29:1

o

174 294 102

212 782 49 733 151 241 367 1,492

415 1,077

657 91

12 760

317

97%

1971

NIA

8 10 11

3 10 7.6

14.7 7.2 7.6 22:60

127

217 85 89 518 41 477

246

700 1,423

440 983

637 4

(36) 605 378

79%

1970

N/A

N/A

21.0 8.0

8.6 22:40

131 142 167 37 477 41 436

55 130 621

497 124

478 5

21

504 (380)

87%

1969

NIA

N/A

13.9 11.1 12.6 27:-

168 125 57

174

524 41

483

57 440 980

499

481

407 5

(2) 410 71

118%

'JExtraordinary profit made by Volvo BM on sale of flxed assets excluded.

'IAdjusted income is defined as income belare allocations and taxes reduced by a tax liability of 53%. Prior to 1 972 this percentaga was 50. The income per share for 1 969 has been computed on the number of shares outstanding alter the scrip issue in 1970. ·

FINANCIAL STATISTICS 1974 1973 1972 1971 1970 1969

Balance Sheet at

yearend (In milllons of Skr) - Consolidated

Bank accounts and cash .. 200 324 205 136 92 89

Loans and short-term notes . 1 ,214 1,254 1,093 844 511 894

Accounts receivable 2,102 1,743 1 ,481 1,223 1 ,011 928

lnventories . . . 3,922 7,438 2,588 5,909 2,014 4,793 1,857 4,060 1,628 3,242 20d 3,115 Blocked investment

accounts with

The Central Bank of Sweden 127 128 32 20 57 36

Long-term loans ... .. . . 80 22 13

Shares and participations .. 85 78

BB

27 34 16

Property, plant and equipment 3,106 3,271 2,677 2,777 2,225 2,326 1,824 1 ,851 1,371 1,405 1 095 1.111

Total assets. . . .. 10,836 8,814 7,151 5,931 4,704 4,262

Accounts payable 1,296 983 791 560 489 442

Advance payments from

customers . . . .. .. 625 590 499 559 335 295

Parent company Dividend 78 75 49 41 41 1.1

Bankloans . . . 1,304 722 527 384 207 148

Other loans . . . 304 230

{1 ,077 {1 ,031 { 803 \ b19

Other current liabilities and provisions 1,221 4,828 1 '1 92 3,792 2,943 2,575 1,875 1,745 Notes payable and

mortgage loans . . . . . . 747 485 380 291 181 151

Bond issues outstanding 330 245 254 143 41 44

Pension liabilities . . . 370 1,447 319 1.049 249 883 214 648 184 406 160 355

General inventory reserve 1,519 1,129 901 799 731 550

Accumulated extra depriciation 1,082 952 80~ 637 483 345

lnvestment funds ... ... ... 395 478 380 320 344 414

Special investment funds .... 50 Work environment funds .... 68

lnventory investment accounts 1 3,115 22 2,581 20 2,109 20 1,776 19 1,577 20 1,328

Minority interests . 10 8 11 5 4

o

Share capital . . . . 654 624 613 513 513 ^'l.$2

Legal reserves . . . 460 348 282 204 185 2211

Retained earnings 322 1,436 412 1,384 31

o

1,205 210 927 144 842 2s1 833 Total liabilities and

shareholders' equity

. .

^{·."' 10,836 8,814 7,151 5,931 4,704 4,262}

Pledged assets .. . . 1,876 1,523 1,042 1,029 620 705

Conlingent liabilities 402 213 30~ 385 171 136

Capita\ commitmentsll. 1,239 923 1,06E 967 N/A N/A

1linvestments decidedon but not yet provided for at the end of the year.

1975 1974 1973 1972

Quarterly sales and income

Sales (millions of Skr)

1st quarter

..

- -

- ....

3,028 2,312 2,078 1.-684

2nd quarter • 2,607 2,097 1,655

3rd quarter 2,719 2,246 1,866

4th quarter 2,899 2~565 2,141

Whole year 10,537 8,986 7,346

lncome before allocations and taxes (millions of Skr)

1st quarter 166 235 280 196

2nd quarter 228 208 148

3rd quarter 111 214 172

4th quarter 123 207 242

Whole year .. 697¹1 909 - -758

lncome betare a/Jocations and taxes as a percentage of sales

1st q u arter 5.5 10.2 13.5 11.6

2nd quarter 8.7 9.9 8.9

3rd quarter 4.1 9.5 9.2

4th quarter 4.2 8.1 .11.3

Whole year 6.6 10.1 10.3

Adjusted income in Skr per share²l

1st quarter 8:50 10:50 7:50

2nd quarter 8:20 7:80 5:70

3rd quarter 4:00 8:10 6:60

4th quarter . .

. . . ... - .

^{4:40 7:80 9:30}

Whole year

. ^{. .}

^'

^...

^{25:10 34:20 29:10}

11Extraordinary profit made by Volvo BM AB on sate of fixed assets in 1 97 4 has been excluded (Skr 40 million).

~IAdjusted income is defined as income betare allocations and taxes reduced by a tax burden of 53%. The calculatior is based on the number of shares outstanding at the end of the year.

FINANCIAL STATISTICS

The Volvo share eapital (In Skr)

Share capita! Number of shares Dividend per share Dividend, total

1926 200,000 4,000

1930 4,200,000 84,000

193511 13,000,000 260,000

1936 13,000,000 260,000

1937 18,200,000 364,000

1938 18,200,000 364,000

1939 18,200,000 364,000

1940 18,200,000 364,000

1941 18,200,000 364,000

1942 20,000,000 400,00021

1943 25,000,000 500,000

1944 25,000,000 500,000

1945 37,500,000 750,000

1946 37,500,000 750;000

1947 37,500,000 750,000

1948 37,500,000 750,000

1949 37,500,000 750,000

1950 37,500,000 750,000

1951 56,250,000 1,125,000

1952 75,000,000 1,500,000

1953 75,000,000 1,500,000

1954 75,000,000 1,500,000

1955 90,000,000 1,800,000

1956 90,000,000 1,800,000

1957 90,000,000 1,800,000

1958 90,000,000 1,800,000

1959 108,000,000 2,160,000

1960 114,000,000 2,280,000

1961 114,000,000 2,280,000

1962 142,500,000 2,850,000

171 ,000,000 3,420,000 1963 171 ,000,000 3,420,000

1964 228,000,000 4,560,000

1965 228,000,000 4,560,000

1966 273,600,000 5,472,000

342,000,000 6,840,000

1967 342,000,000 6,840,000

1968 342,000,000 6,840,000

1969 342,000,000 6,840,000

1970 513,000,000 10,260,000 1971 513,000,000 10,260,000 1972¹1 598,500,000 11,970,000 607,180,000 12,143,600 613,430,000⁴1 12,268,600 1973 624,505,000 12,490,100 1974¹1 653,755,000 13,075,100

The share capita! of the company at 31 of December 1974, kr 653,755,000:-, was divided into 5,801,000 A-shares and 7,27 4,100 B-shares, each with a par val u~ of Skr 50.

Each of the A-shares is entitled to one vote and each of the B-shares is entitled to one-tenth of a vote but in all other respects they rank pari passu with the A-shares.

Only a limited number of Volvo's "A" and "B" shares

known as free shares ( representing lessthan two-fifths of the share capita! and carrying lessthan one-tifth of the vetes for the total sh are capita!) ma y be acquired either .by subscription or transfer by (i) any non-Swedish citizen, corporation or institution; (ii) any Swedish trading partnership with a non- Swedish partner; (iii) any Swedish ca-operative association;

(iv) any Swedish lirnitad company issuing bearer shares;

or (v) any oth.er Swedish limited company whose Articles of Association do not contain certaln restrictions on the 8

rights issue 20: l

2:50 650,000 rights issue.

2:50 650,000

2:50 910,000 rights issue

3:- 1,092,000

3:- l ,092,000

3:- 1,092,000

3:- 1,092,000

3:- l ,092,000 rights issue

3:- 1,500,000 rights issue 1 :4

3:- 1,500,000

3:- 2,250,000 rights issue 1 :2

3:- 2,250,000

3:- 2,250,000

3:- 2,250,000

3:- 2,250,000

3:- 2,250,000

3:- 3,375,000 rights issue 1 :2

3:- 4,500,000 scrip issue 1 :3

3:- 4,500,000

3:60 5,400,000

3:- 5,400,000 scrip issue 1 :5

3:- 5,400,000

3:- 5,400,000

3:- 5,400,000

3:- 6,480,000 scrip issue 1 :5

3:- 6,480,000 rights issue³1

3:75 8,550,000

rights iss~,Je 1 :4 kr 60:-

3:- 10,260,000 scrip issue 1:5

4:- 13,680,000

3:- 13,680,000 scrip issue 1 :3

3:90 17,784,000

rights issue 1 :5 kr 75:- 3:50 23,940,000 scrip issue 1 :4

4:50 30,780,000

5:50 37,620,000

6:- 41,040,000

4:- 41,040,000 scrip issue 1 :2

4:- 41,040,000

rights issue 1 :6 kr 80:- rights issueJI

4:- 49,074,400 rlghts issueJI

6:- 79,940,600 rights issue31

6:- 78,450,600

acquisition of certain assets. Free shares are designaled

"Fria" on the relative share certificates. The remaining Vqlvo shares are known as restricted shares and may only be acquired by subscription or transter by Swedish citizens and certain Swedish campanies or associations. Theseshares are designaled "Bundna" on the relative share certificates.

"lntroduction on the S1ocknolm stock Exchange In 1935. on the London Stock Exchange in 1972 a.nd on Hamburg, DUsseldart and Frankfurt Stock Exchanges in 197 4.

2lRights issue shares noi dividend bearing in 1942.

3lNew Volvo sheres issued as payment for acquisition ot other companies.

•l The registared share capital of the Company amounted to 612,68 mkr at the end of the year. After registration of all share lncreases decided upon during 1972 the share capita! amounts to 613,43 mkr.

\~~~

w{/\

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Distribution of shares, 1975

''1 ^"l•

This table has been compiled primarily from information provided by VPC AB (The Swedish seeurities Register Center) in early 1975.

No. of In% of Totalshares In% of Average no.

sh are- all share-

Volvo shareholders with:

Max. 1 00 s hares . . . .•••.•••..

Min. 1 01, max. 500 shares . . . . • Min. 501, max. 1 ,000 shares ...

Min. 1,001, max. 10,000 shares More t han 1 0,000 s hares . . .

Share coupon certificates not yet exchanged ...

Total . . . . The 1 5 largest shareholders in Volvo as per March 25,1975

holders holders

9_6,600 82.7 17,000 14.5 2,000 1 .7 1 '1 00 0.9

48 0.0

approx. 220 0.2

approx. 11 6,900 100.0

Number of In% of

Data from VPC AB, nominee registared holdings

not included. s hares share capita!

National Pension lnsurance Fund ....

Svenska Handelsbanken Pension F und.

AB Custos . . . . Skandia lnsurance Group., . . . . Ångfartygs AB Tirting . . . . Skandinaviska Enskilda Banken Pension Fund Svenska Personal- Pensionskassan . . . . . ..

DAF Holding B.V. . . . . . . • • . . • Pribo (Prippbolagen) AB ... .

lnvestment AB Promotion ... . Rederibolaget AB Transatlantic Industrivärden AB . . . . Trygg Life lnsurance Company l.,...

Hansa lnsurance Company ..

J.

lnvestment AB Asken . . . .. .

611,723 4.68

322,117 2.46

243,400 1.86

241,306 1.85

134,085 1.03

133,952 1.02

132,150 , .01

110,000 0.84

82,976 0.63

80,000 0.61

70,500 0.54

55,500 0.42

54,000 0.41

46,000 0.35

45,000 0.34

'l::

,s-~

Long-term de:rsof the Volvo Group

\8,

cS

Long-term debt (adjusted to take account of bond and nate issues in the first four months of 1975) as at December 31, 1974.

The Company Unsecured SFrs 40 million SFrs 60 million SFrs 20 million SFrs 10 million SwKr 75 million SwKr 100 million

us

$ 25 million US$ 25 million US$ 6 million Other

Total unsecured Secured

Subsidiary Campanies Unsecured

Secured

4%% Bands 1961176 at a price of 8% Sonds 1975/90 at a price of 9% Notes 1975/80 at a price of 9\4% Notes 1975/82 at a price of 7%% Sonds 1971 /91 at a price of 7%% Sonds 1974/89 at a price of 8% Bands 1972/87 at a price of 9%% Bands 1975/85 at a price of 9%% Sonds 1975/85 at a price of

Total long-term dept of the Volvo Group

Flnance Companles

100 per cent 99% per cent 98 per cent 97% per cent 100 per cent 100 per cent 100% per cent 99% per cent 100 per cent

Skr Million

8.1 93.0 32.4 16.2 67.3 96.3 118.7 99.4 23.6 86.0 641.0 127.0

250.8 322.5 1.341.3

owned in share of shares size class capita l per holder

2,837,000 21.71 29

3,491,000 26.7 205

1 ,366,000 10.5 683

2,332,000 17.8 2,120

3,038,200 23.2 63,296 10,900 0.1 approx. 50

13,075,100 100.0 112

Number of In % of votes total votes 307,069 4.70 230,064 3.52 243,400 3.73 89,323 1.37 134,085 2.05 96,629 1.48 47,466 0.73 11,000 0.17 39,993 0.61 62,000. 0.95 63,074 0.97 20,805 0.32 20,932 0.32 17,830 0.27 45,000 0.69

, , lq

The Volvo Group has formed or become s hareholder in finance campanies in Sweden and Norway (partly owned).

Switzerland, Belgium and Hang Kong. Volvofinans in Sweden a'nd Fidesin Norway exclusively support Volvodealers with their financing. Volvofina in Belgium, Volvonia in Switzerland

and Volvo Finance Far East ltd. in Hong Kong also give financial support to local dealers but their main objective is to give credits to importers of Volvo products in a number of countries all over the world.

FINANCIAL STATISTICS

Accounting Principles Volvo Group Accounts

The Balance Sheet of the Group is based on the pruchase method which is characterised by the fact that the income of subsidiaries is not included in the retained earnings of the Group if such income has been generaled betare the time at which the subsidiary was integrated with the Group.

In the consolidatian of the foreign subsidiaries' Balance Sheets, current assets and current liabilities have been convart- ed at the rates of exchange prevailing at the end of the year while, in the case of other items, the average rates of exchange prevailing during the year of acquisition or creation have mainly been used. The lncome statements have been convart- ed using the average rates of exchange for the year. In cases where the rate of exchange on the day of the Balance Sheet was lower than the average rate or the rate carried on the books for previously retained earnings, the n the exchange loss- es affecting n et in come or retained earnings have been ch arg ed against the operating income of the Group. When the rate of exchange at the end of the year washighert han the average rate, then the net income has been converted at this higher rate only when this has been justified by proposed dividends to the Parent Company.

Assets and /iabilities in fo(eign currency

Assets and liabilities in foreign currency of Group campanies in Sweden have been converted into Swedish Kronor by utilisinga rate of exchange which, in the case of assets, is the lower of the rates recorded earller and the rate valid on the day of the Balance Sheet, and the higher of these rates in the case of liabilities. To the extent that receivables and liabilities have been safeguarded from the viewpoint of currency through forward exchange, due consideration has, however, been taken.

Allocations and untaxed reserves

The heading "AIIocations" in the lncome statement includes the allocations of the in come for the year carried out for the purpose of strengthening financial reserves, as weil as the compulsory allocations carried out in the Financial statement for 197 4. In the Balance Sheet, the "special allocations"

consist of the accumulated amount of untaxed reserves created through such measures.

Swedish tax legislatian provides the possibility of further strengthening the reserves by writing down inventories. After deductions for obsolete items, the whole inventory can be written down by a maximum of 60%.

For machinery and equipment, Swedish tax legislatian per- mils the full writing down du ring a five-year period, that is to say an average of 20% per year. As shown under ("Depreci- ation"), the Group calculates its financial depreciation on the basis of lower depreciation rates. The difference between the depreciation permitled by the taxatlon laws and the tinan- cia! depreciation is accounted for as an extra depreciation.

Swedish joint stock campanies are permitled to transfer not more than 40%-of the income for the year before tax to an in- vestment fund but a sum equal to 46% of such transfers must be deposited in a non-interest bearing account- the in vest- ment account- with The Central Bank of Sweden.

When special approval is granled by the authorities, the investment fund can be utilised for the direct writing down of fixed assets and then the corresponding deposit may be withdrawn from the investment account. After a fixed assets has been written down by utilising the investment fund, then the depreciation applied for taxatio n purposes may only

be calculated on the residua! value. In the lncome Statement, a transfer to the investment fund is reporled as an allocation.

In the Balance Sheet the investment fund represents allo- catians as yet unutilised, whilst the direct writing-down of fixed assets is reporled in the form of accumulated extra de- preciation.

For 1974, Swedish campanies shall, according to law, make allocations to a special investment fund and a work envi ronment fund. Special rules apply for the utilisatlon of these funds.

Furthermore, the allocated sum in ils entirety must be paid in to a non-interest bearing account with The Central Bank of Sweden. In other aspects, the principles applying to the investment fund also apply here.

These allocations conslitute the establishment of untaxed reserves. A Ilability to taxatlon would arise if the untaxed re- serves were credited to income.

Through speciallegislation, contributlons in the form of in- come transfer may be made between Swedish campanies in the same group. Contributlons of this type are deductib\e for the same group. Constributions of this type are deductible for the donor and are considered as taxable income of the beneficiary.

lnventories

The inventories are included in the Balance Sheet at the acquisition price or replacement price at the end of the year, whichever is the lower. Obsolete items have been fully provided for. The value in the Balance Sheet does not exceed the sales value of the products a fler the deduction of selling costs.

Depreciation

As far as depreciations is concerned, the Group differentlates in ils accounts between three types of depreciation, de- preciation for east accounting purposes, financial depreciation and extra depreciation.

Depreciation for east accounting purposes is used by the productian campanies for east calculations. The European productian campanies of the Group apply uniform standards and datermine this depreciation on the basis of the cal- culated existing purchase value of the fixed assets and their economic \ife. Information concerning this depreciation for theselatter campanies is included in the no tes to the accounts.

Forfinancial accounting, the depreciation for cost accounting purposes is replaced by the financial depreciation with depreciation rates which are on the whole identical but cal- culated on historical cost. Depreciation of bulldings is generally 2-4% per annum, whilst the depreciation on most of the machinery is 10-15% per annum, ·In both cases without any consideration being taken to possible direct writing-down of fixedassets against the investment fund. At the sales cam- panies and the productian campanies outside Europe, depre- ciation for taxatlon purposes is used as Financial depreciation.

Financial depreciation is included rn "Cost of sales, selling and administrative expenses" and information about its size is included in the nates to the accounts. The difference between depreciation permitled fortaxatlon purpose and tinan- cia! depreciation is kqown as extra depreciation.

To the extent that fif)ancial depreciation is also applied to fixedassets which have been written down against the invest- ment fund, earlie'r accumulated extra depreciation can be re-allocated to income. This is accounted for under the head- ing "AIIocations".

Operating statistles

...

OPERATING STATISTICS

Products

The Volvo Group manufactures a range of products com- prising cars, trucks and buses, marine and industrial engines, earthmoving, agricultural and farestry machines, jet engines, hydraulic machines, leisure products.

Total sales by product group (incl. parts) in 1972-197 4 we re as follows (per cent):

1972 1973 1974

C ars 59 57 53

Trucks and buses 21 22 53

Marine and industrial engines 5 5 5

Earthmovi ng, agricultural and

farestry machines 11 11 12

Jet engines, hydraulic machines 3 3 3

Leisure products 1

Other products (development

contract work, tools, etc) 2 2

Total sales (Skr. Million) 7,346 8,986 10,537 C ars

The Volvo Car Division isthelargest of the Volvo product groups. The present product range introduced in the autumn of 197 4, includes so me ten models of the 240 Series and the 264 Series, w hi ch replacethe 140 Series of which 1 ,245,000 u nits were produced and the 164 Series, which, however, remalns in production for same markets. In designing the new series of models Volvo was able to rely on experience gained in the Volvo experimental safety ear project, VESC.

Trucks

Volvo produces trucks with gross vehicle weight rang i ng from 6 to 26 metric tons. In the heaviest vehicle class (gross vehicle weight over 16 tons) Volvo takesthird place among West European truck manufacturers. The range of trucks covers a wide spectrum of transportatlon requirements, from distribution in urban areas to oil and timber haulage.

Buses and public transport systems

Volvo produces bus chassis of three basic designs. All are easily adaptable for a large number of superstructures. The small models are mostly used in ditticull road conditlons and in urban and suburban traffic. The largest chassis are suited to a large number of transport tieids-from tourist coaches to vehicles for urban transport.

In its public transport systems product group Volvo is work- ing on eff1cient traffic systems based on existing technology and new technological solutions for the future.

Marine and industrial engines

Volvo Penta is one of the l argest manufacurers in the world of en gines for small c ratt. Volvo Penta in board eng1nes and the Aquamatic inbcard engine/outboard drive unit are used in ferries, freighters, fishin g boats and pleas u re c raft. Volvo Penta industrial engines are utilized in heavy duty equipment such as excavators, dumpers, graders and cranes.

Through the acquisition in 1973 of Monark-Crescent AB's ' outboard engine manufacturing division, Volvo is now Western Europe's largest manufacturer of outboards.

Earthmoving, agricultural and farestry machines

Volvo BM AB is one of the leading West European producers of earthrnaving and farestry machines and isthelargest manufacturer of tractors in the Nordie Area.

Earthrnaving machines manufactured by Volvo BM AB include loaders, dumpers, road graders, mobile cranes and back-hoe loaders. Farestry machines includes equipment for fel l i ng, de-limbi ng, cutting and transportingtimber. The Volvo BM rang e of agricultural machines includes combine harvesters and tractors.

Jet engines and hydrau/fe machines

Volvo Flygmotor AB has manutactured aircraft engines for mor e t han 40 years and now produces jet en gines for the Royal Swedish Air Force "Viggen" fighter. This subsidiary also overhauls jet engines for commercial aircraft.

Parallel with this, Flygmotor is engaged in research and development projects in the aircarft and racket engine fields.

The company makes several products for the civillan market, such as hydraulic mach i nes, complete plants f o~ treatment of industrial exhaust gases, diesel engine components and steering gears for Volvo cars.

1974 1973 1972 1971 1970 1969

1 Units sold, AB Volvo total

Cars .. 237,657 248,790 232,172 209,964 201,104 180,793

Trucks . 21,647 18,671 16,822 15,400 15,574 14,840

Buses 2,447 1,754 1,554 1,259 1 '113 1 '121

Tractors 7,263 7,157 6,860 7,101 8,407 9,237

Combines 1,860 1,738 2,680 2,199 2,160 2,095

Construction machines . 5,288 4,120 3,202 3,621 3,954 4,035

l

Farestry machines ... 590 414 417 461 385 484·

J

2 Totals (in thousands) of new units regisiered on certain markets and Volvo market penetration (%)

Cars

Australia, total 474 459 405 417 413 401

-Volvo% ... 1.3 1.0 0.8 0.5 0.2 0.2

Austria, total . 167 187 222 195 127 101

-Volvo% ...

. '.

^{2.7 3.0 3.0 2.7 2.9 1.7}

Belgium, total 328 336 331 260 296 306

-Volvo% ... 2.2 2.6 2.4 2.5 2.6 2.2

Canada, total . _ . . . . • . . 869 936 813 745 636 756

-Volvo% ... 1.2 1.1 1.2 1 .1 1 .1 0.9

Denmark, total _

.

^{79 122 92 104 108 117}

-Volvo% .. 5.2 6.6 8.4 9.2 10.5 9.5

Finland, total

' .. ^~

. . . .

^~ ..

. . . ..

^{96 119 101 75 92 84}

-Volvo o/o ..

- - ...

^~

... . ... .

3.3 3.5 4.0 4.0 4.4 4.1

France, total 1,525 1,746 1,637 1,469 1,296 1,365

-Volvo o/o ..

- -

"" -...

- -

^{0.2 0.3 0.3 0.3 0.3 0.2}

W Germany, total 1,693 2,031 2,143 2,152 2,107 1 ,841

-Volvo o/o •. ... 0.5 0.6 0.6 0.5 0.4 0.2

Great Britain, total 1,269 1,662 1,638 1,286 1,077 965

-Volvo o/o .. 1.4 1.4 1.2 1.2 1.0 0.8

ltaly, total 1 ,2731) 1,450 1,470 1,435 1,364 1 ,218

-Volvo o/o .. . . ^0.111 0.1 0.1 0.1 0.1 0.1

The Netherlands, total 404 430 432 403 432 350

-Volvo o/o ... 0.9 1.3 1 .1 0.9 0.9 0.8

Norway, total . 90 .. 90 75 81 70 99

-Volvo% ... 8.8 9.2 11.0 9.8 9.0 9.3

Sweden, total 260 226 221 198 203 226

-Volvo% ... 21.9 26.4 25.2 25.8 26.3 26.1

Switzerland, total 202 239 259 235 211 192

-Volvo% .. 3.2 4.0 3.5 3.9 4.1 3.8

\

U.S.A., total 8,701 , 1 ,351 10,488 9,729 8,388 9,446

-Volvo% .. 0.6 0.5 0.5 0.5 0.5 0.4

J

₁

1 Du e to a dela y i n regisiralian stalistics, on ly estimated figures can be provided.

OPERATING STATISTICS 1974 1973 1972 1971 1970 1969

Trucks

Due to variations in weight classification methods in different countries, the extent of stalistics varies somewhat between countries.

The weight classes are shown in the notes below

Austria, total1_l 3,731 3,830 5,750 4,235 3,436 2,448

-Volvo% ... 8.0 7.2 5.4 4.4 3.2 2.9

Belgium, total 6,328 6,196 5,313 5,998 6,440 5,409

-Volvo% ... 14.2 13.7 15.8 13.6 13.0 11.3

Denmark, totaJ21· 3,528 4,454 3,804 3,755 4,237 4,246

-Volvo% .. . 31.9 30.6 32.8 33.0 29.8 26.9

Finland, total³' 3,937 3,885 3,608 3,452 3,800 3,707

-Volvo% ... 30.9 26.5 26.4 25.6 23.3 18.8

France, total³l 34,234 38,916 34,558 31 ,215 32,015 34,061

-Volvo% ... 3.8 3.7 3.3 2.6 2.2 1.5

W Germany, total 31 23,831 31,554 30,222 43,776 36,400¹1 29,30011

-Volvo% . . . 0.7 0.5 0.4 0.2 0.311 0.21!

Great Britain, total⁴l

...

^{37,165 45,949 36,4001! 32,886 38,0031! 37,293 11}

-Volvo% . . . 7.0 5.4 4.41! 3.6 2.711 1 . 711

The Netherlands, total⁵l . 7,161 61 7,673 6,602 7,796 7,402 6,134

-Volvo% .. .. 1 0.1⁶1 11.0 11.6 9.5 8.7 9.3

Norway, total³' . 2,603 2,461 2,319 2,807 2,969 2,729

-Volvo% . . . . 40.5 31.9 32.0 35.0 33.6 30.7

Sweden, totaJ3l. 6,433 5,589 5,604 5,755 6,503 5,833

-Volvo% .... 51.8 50.4 51.3 50.5 50.1 49.3

Switzerland, total⁵1 2,840 3,506 3,731 2,892 2,437 1,856

-Volvo% . . . . .

-

^~ .

. . .

^{.. 17.4 17.5 19.4 18.5 16.0 15.4}

Buses

Denmark, totaJ7! .. . . -

..

^{439 516 518 446 608 513}

-Volvo% ... 20.3 15.1 30.5 18.8 11.2 14.2

Finland, total⁷'

... -

. ' 813 799 789 630 725 629

-Volvo% ...

- . - . - ..

^{46.6 39.5 39.5 36.2 34.6 33.4}

Norway, total7! 601 552 565 497 468 573

-Volvo% ... 45.3 36.2 46.9 44.5 38.7 41.2

Sweden, total8l 538 492 528 460 374 425

-Volvo%

. . . . ..

^{51.9 52.9 48.9 50.7 46.3 49.2}

Tractors

Denmark, total

. .. ... - - ..

^{8,037 8,408 6,885 3,991 5,537 5,812}

-Volvo BM%

...

9.8 9.0 9.4 8.4 9.6 10.1

Finland, total . 10,016 10,499 9,964 9,770 10,297 11 ,088

-Volvo BM% 4.6 4.6 4.9 4.7 4.7 4.5

Norway, total . 5,609 5,115 5,403 5,979 5,534 7,051

-Volvo BM%

.

^' '

..

^{' 14.4 19.2 17.5 20.8 18.0 20.5}

Sweden, total 8,764 9,384 7,182 9.004 8,570 9,853

-Volvo BM%

.. ^.

^{36.5 36.2 36.3 37.7 39.6 37.1}

'lTrucks > 5 Tons payload

21Trucks-> 11 Tons Gross Vehicle Weight ''Trucks > 1 O Tons Gross Vehicle Weight

•'Trucks > 5 Tons Curb weight 1968-1971, from 1972 lncludes Trucks > 1 O Tons Gross Vehicle Welght ''Trucks > 1 O Tons Gross Vehicle Weight excluding 4 x 4,

6x4and6x6

0'Estimated figures

"All classes

•1 Bust~::. > 25 passengers

1974 1973 1972 1971 1970 1969

3 Volvo production, total figures

Cars

.

. 234,189 252,036 233,965 214,438 204,991 181,668 .

Trucks 21,080 18,763 16,992 15,390 16,279 14,547

Bu~es 2,209 1,833 1,456 1,523 1 '118 1,008

Tractors 6,891 6,91

o

^{6,914 6,741 8,460 9,559}

Combines 1,485 1,430 1,530 1,665 1,925 2,215

Construction machines 5,277 4,343 3,394 3,821 4,047 4,076

Farestry machines 589 427 502 438 245 325

4 Volvo productian (assembly) in different factories/countries

Cars

Volvo Tarslanda Plant, Sweden 157,185 181 '192 180,200 176,000 168,500 151 ,000

Volvo Kalmar Plant, Sweden 9,055

Volvo Europa N.V., Belgium .. 49,624 50,595 37,000 27,000 23,000 17,800

Swedish Motor Assemblies SDN. BHD., Malaysia 1,522 1,344 1,400 1,200 900 1,000 Volvo Australia Pty. Ltd., Australia 5,738 5,424 4,300 1,300

Volvo Canada Ltd., Canada

...

^{10,082 10,985 9,600 8,200 7,500 6,700}

Assembly by importers on other markets ·_ 2,242 2,496 3,653 2,861 6,570 6,264

Trucks

Volvo Lundby Plant, Sweden 14,406 12,892 11 ,345 11 ,236 12,289 11 ,667

Volvo Europa N.V., Belgium 2,868 2,786 2,532 2,241 2,260 1,573

Zamyad Co Ltd., Iran .

. . .

. -

- - - -

^---

...

^{800 445 380 255 330 290}

Swedish Motor Assemblies SDN. BHD., Malaysia 140 40 15 70 125

Volvo Australia Pty. Ltd., Australia ... 825 690 550 11

Volvo del Peru SA, Peru . . . 1,000 765 685 385 125 60

Assembly by importers on other markets 1 ,041 1 '145 1,485 1 ,1 92 1 ,150 957

Buses

Volvo Lundby Plant. Sweden

. . . . . .. ....

^1,073 1 '151 1,068 1 ,125 778 865

Volvo Europa N.V., Belgium 120 45 31 10 11

Swedish Motor Assemblies SDN. BHD., Malaysia 5

Volvo Australia Pty. Ltd., Australia . . . . .. .... 65 12 8

Volvo del Peru SA, Peru . . . . . .. . . . 514 175 75 60 10

Assembly by importers on other markets. 557 375 268 299 320 207

Tractors, chassis and components

Volvo BM AB, Eskilstuna, Sweden 12,052 11,447 9,470 9,353 11,418 12,449

Construction machines· . . . . • • • • o •

Volvo BM AB, Arvika, Sweden 2,200 1,659 1,230 1,594 1,334 1 ,511

Combines

Volvo BM AB. Hallsberg, Sweden 860 830 1,530 1,665 1,925 2,215

Not e.

The total assembly figures in Table 4 can ditler from the productian figures in Table 3 due to the fact thatthere is same delay in the assembly of Gompietely Knocked Down shipments (transport and assembly time).

OPERATING STATISTICS 1974 1973 1972 1971 1970 1969

5 World production totals (millions of units)

Cars

Total whereof: 25.5 29.4 27.5 26.2 22.5 23.0

Western Europe .

. .. .

^{10.1 11.5 11.4 10.9 10.4 9.6}

Sweden .. . 0.3 0.3 0.3 0.3 0.3 0.2

Great Britain 1.5 1.7 1.9 1. 7 1.6 1 .7

France . . .. 2.7 2.9 3.0 2.7 2.5 2.2

ltaly . . . 1.7 1.8 1.8 1.7 1.7 1.5

West German y. . . . 2.8 3.7 3.5 3.7 3.5 3.3

North America ..• ^{. . . O. a • • • •} 8.6 10.9 10.0 9.7 7.4 9.2

U.S.A. . 7.4 9.7 8.8 8.6 6.5 8.2

Canada 1.2 1.2 1.2 1 .1 0.9 1.0

Japan ... 3.9 4.5 4.0 3.7 3.2 2.6

Trucks and buses

Total whereof: 8.80 8.90 7.60 7.00 6.50 6.50

Western Europe. 1.41 1.47 1.32 1.35 1.35 1.30

Sweden .. . . 0.04 0.03 0.03 0.03 0.03 0.03

Great Britain .

...

0.40 0.42 0.41 0.46 0.46 0.47

France .. ... 0.42 0.39 0.34 0.32 0.29 0.29

The Netherlands ^{• l • • • •} 0.01 0.01 0.01 0.01 0.01 0.01

l ta ly .. . . 0.14 0.13 0.11 0.12 0.13 0.12

West Gerrna ny. 0.26 0.30 0.29 0.29 0.31 0.29

North America. 3.10 3.33 2.77 2.33 1.97 2.27

U.S.A . . 2.73 2.98 2.45 2.05 1.72 1.96

Canada 0.37 0.35 0.32 0.28 0.25 0.31

Japan .. . ^{• l} . . . 2.62 ·2.61 2.27 2.09 2.11 2.06

Trucks

>

6 tons Gross Vehic/e Weig:1t in North America, Western Europe and Japan (thousands of units)

Total whereof: 1,365.3 1 ,341. 7 1,129.0 1,110.4 1,160.2 1,159.7

Western Europe .

. ^{. .. ...}

^{391.0 365.3 329.6 382.9 413.1 380.6}

Sweden .. .. ...

- .

^{37.7 33.6 30.3 27.2 29.0 25.3}

Great Britain11 109.6 113.3 106.5 148.8 163.3 168.1

France .. . .. 46.3 41.2 39.8 39.5 42.3 39.6

The Netherlands 10.7²¹ 8.7 7.5 8.1 7.6 6.5

ltaly ... ... . . . 48.0 44.1 31.5 35.9 44.4 37.2

West Germany 110.1 103.4 94.6 106.7 106.0 84.4

North AmericaJI 483.1 471.6 420.1 363.3 354.6 409.5

U.S.A.^{31 ••} 411.6 402.1 368.1 318.1 301.2 355.3

Canada³1 71.5 69.5 52.0 44.9 53.4 54.2

Japan⁴1 •. •• 491.2 504.8 379.3 364.2 392.5 369.6

'i Trucks> 5 Tons Gross Vehicle Weight 1968-1972

>IEstimated figures

31Trucks>6.3 Tons Gross Vehlcle Weight

41Trucks>2 Tons Payload

1974 1973 1972 1971 1970 1969

6 Volvo Group or Campanies - nu m ber or employees (Dec. 31)

Hourly paid Sweden

AB Volvo 24.701 22,642 21 '11

o

^{19,413 18,364 16,469}

Volvo BM AB. 3,297 2,949 2,648 2,708 3,337 3,127

Volvo Flygmotor AB 1,726 1,560 1 ,486 1,465 1 ,431 1,382

The Volvator Group in Sweden 1,991

Other Swedish subsidiaries

•

^{638 2,322 952 997 755 576}

Total in Sweden . 32,353 29,473 26,196 24,583 23,887 21,554

Outside Sweden.

...

^{5,662 4,890 3,478 2,108 1,490 1,11}

o

Total, hourly paid 38,015 34,363 29,674 26,691 25,377 22,664

Salaried statt Sweden

AB Volvo . -

-

^{.... "} ..

-

.. ' , 9,290 8,751 8,149 7,895 7,453 6,277

Volvo BM AB . .

... ..

- -

.

^{1,582 1,511 1,552 1,660 1,750 1,672}

Volvo Flygmotor AB 994 972 945 933 936 981

The Volvator Group in Sweden 1,793

Other Swedish subsidiaries .. 259 1,853 877 865 781 542

Total in Sweden . . . . ... 13,918 13,087 11,523 11 ,353 10,920 9,472

Outside Sweden . . . 4,811 3,958 3,604 3,111 2,569 1 ,912

Total, salariad staff . . . 18,729 1,7,045 15,127 14,464 13,489 11,384

Total number of employees 56,744 51,408 44,801 41,155 38,866 34,048

7 Volvo - Purchase (Production,

raw material and parts) (millions of Skr).

Sweden . . . 2,106.0 1,838.0 1,516.6 1,374.3 1,222.4 1,061.3

Denmark, Norway, Finland 197.0 187,0 158.6 118.1 107,3 84.7

Other European countries 2,064.0 1,841.0 1 ,491.9 1,202.4' 1,049.3 809.9

North America 175.0 160.0 152.6 143.5 133.5 124.7

Others 53.0 50.0 34.7 43.2 31.1 17.5

Total

-- ...

^"' . ...

. . . ...

4,595.0 4,076.0 3,354.4 2,881.5 2,543.6 2,098.1

Administration

THE VOLVO GROUP OF COMPANIES

AB Volvo- Subsidiaries and associated companies May 1,1975

The Parent Company

AB Volvo,

Göteborg, Sweden

Group Headquarters Product units:

Share capita l: MSkr 653.8

Productian and sales subsidiaries Dieseltechniek Nederland B. V.

R idderkerk, Netherla nds Dfl20,000

Jofa AB Malung

_ MSkr 1.0

Volvo Australia Pty. Ltd.

Sydney, Australia

M A$ 2.0

Volvo BM AB 1 l

Eskilstuna

MSkr 100.0

Volvo Canada Ltd, Toronto, Canada

M Can$ LO

Volvo Cetr B.V. 11

Eindhoven, Netherlands

MDfl 123.8 75%

Volvo Europa N.V.

Ghent, Belgium

MBfr 1,100.0

Volvo Flygmotor AB H Trollhättan

MSkr 36.0

Volvo Fritid AB 1 l

Kungälv

Skr 50.000

AB Volvo Penta 21 Göteborg

Volvo del Peru S.A.

Lima, Peru

MSoles 93.0 85%

Volvo Car Division

Volvo Truck Division Volvo Parts Division Volvo Bus Division Volvo Engineering Division

Productian subsidiaries Swedish Motor Assemblies Sdn.

B hd.

Selangor, Malaysia MMal$1.38 50%3)

Thai Swedish Assembly Co. Ltd.

Bangkok, Thailand

MBaht 8.2 60%

Sales subsidiaries Ailsa Trucks Ltd.

Glasgow, Great Britain

i: ^225,000

Automobi les Volvo S.A.

Lyss, Switzerland

MSfr 8.0

75%

Bolindars Company Ltd.

London, Great Britain

i:aa.ooo

DexAB2l Göteborg

AB Volvator ¹1 Göteborg { Holding company, Deal ersh i ps) MSkr 75.0

Volvo of America Corporation 1) Rockleigh, N.J. USA

M US $ 16.0

Oy Volvo-Auto Ab Helsinki, Finland

MFM 22.5

Volvo Danmark A/S

Copenhagen, Denmark

M D kr 20.0

Volvo Deutschland Gm bH

D ietzenbach,

~ West Germany MDM 35.0

Volvo Deutschland Verwaltungs GmbH Dietzenbach, West Germany MDM 5.0

Volvo

Distribuidora S.A.

Lima, Peru

M Sales 45.4

Volvo France S.A.

Paris, France

MFF 20.5 68 1/3% 4)

Volvo ltalia S.p.A.

Bologna, ltaly

M Lit 400.0

Volvo Norge A/S Oslo, Norway

MNkr 9.0

Volvo Penta Deutschland GmbH Kiel, West Germany

MDM 0.3

Volvo Penta ltalia S.r.l.

Milan, ltaly

M Lit 0.9

Volvo Sudamericana S.A.C.I.

Buenos Aires, Argentina

MPesos 1.35

Volvobil AB 2l

Göteborg

·--

-

Productian units:

Bergslagen Plants Dalsland Plants Kalmar Plant -

Finance subsidiaries Volvo Finance Far East Ltd.

HongKong

MHK $ 1.5

Volvofina S.A.

Ghent, Belgium

MBfr 165.0

Volvonia S.A.

Geneva, Switzerland

MSfr 5.0

Consulting and service units:

Olofström Plants Accounting Persojmel Technological Development Skövde Plants Externa! Transport Plant Engineering Training

Torslanda Plant

Other subsidiaries United Turbine AB Malmö

Skr 2,600 52%

Försäkrings AB Volvia

Göteborg

MSkr 3.0

Interna! Services Purchasing

Associated companies Blackstona

Sweden AB Mjällby

MSkr3.0 30%

S.S.K. Donnan Diesel

Teheran, l ran

MRials89.0 28%

European Truck Development B. V.

Eindhoven, Netherl ands

D fl 40,000 25%

Fides A/S Oslo, Norway IFinance company)

MNkr 2.0 331/3%

Forss-Parator AB Mjölby

MSkr 3.75 25%

Societe Franco- Suedoise de

Moteurs- P.R.V. S.A.

Paris, France MFF 14.8 331/3%

lndustrial Turbines International, lnc.

Los Angeles, Ca!., USA

Motores Diesel Andinos S.A.

Trujillo, Peru 25%

MSoles 15.48 24 %

Teijin Volvo Corporation Tokyo, Japan

M Y en 600.0 50%

Volvo-Data

VoiCom Hungary Gm bH

Budapest, Hungary

MFt3.1 48%

Volvo Malaysia Co.

B hd.

Kuala Lumpur, Malaysia MMal $ 1.63

AB Volvofinans Göteborg

16%

(Finance company)

MSkr 1.5 50%,

Volvokredit AB Göteborg (Finance company)

MSkr 2.5 25%

Zamyad Co. Ltd.

Teheran, Iran

MRials75.0 25%

Figures indicate nomina! va!ue of holding in subsidiary or associated company. M be- f o re monetarv u n i t i ndicates mi Il i on u nits. Percentaga figures indicate the proper- tion of shar.es held by AB Volvo (If not staled = 1 00%).

Realestate campa nies, in- active campanies and sub- sidiaries of subsidarv campa- nies are not shown on the chart.

Where no country is narned the company' s headquarters are situated in Sweden.

1) Subsidiaries, see next page 2) l ncluded in accounts of

AB Volvo

3) Tagether with shares in- directly owned by AB Volvo the proportion held amounts to 58 % 4) The remainder; 31 2/3, is

owned by Volvo BM AB.

Number of employees in Group 31.12.1974 Parant Company Subsidiaries

33.991 22.753 56.744 Total for Group

(Companies out-

side Sweden 10.473)